City Council Agenda
Memo to:
Manteca City Council
From:
Carl Brown, Director of Public Works
Prepared by:
Heather Grove, Water Resources Regulation Manager
Date:
December 17, 2024
Subject:
Hays Road Farmland Lease Agreement
Recommendation:
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Approve a lease agreement between Mizuno Farms for the lease of Hays Road Property and the City of Manteca effective January 1, 2025, to December 31, 2028, and authorize the City Manager to execute the agreement.
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Background:
The City of Manteca owns 417 acres of farmland on Hays Road of which 330 acres are farmable. It was originally purchased with the possibility of relocating the Industrial Pond/Pipeline to the property to facilitate development projects on the land adjacent to the Water Quality Control Facility.
While staff investigate the possible relocation or another use, staff recommended entering into a four-year lease agreement with 2 possible one-year extensions. In 2017, the Hays Road Property was leased to Mizuno Farms effective from December 1, 2017 to December 31, 2024.
With the current lease agreement due to expire on December 31, 2024, a new Farmland Lease Agreement Request for Proposals (RFP) was released on October 28, 2024, and closed December 3, 2024. Only one proposal was received, Mizuno Farms is the submitter. Staff recommends leasing the Hays Road property to Mizuno Farms.
Fiscal Impact:
As stated in the Farmland Lease Agreement (Attachment 1), the rent paid to the City of Manteca is due to the City by November 30th of each year for the term of this lease agreement. The revenue from this lease agreement will generate an estimated $107,250 for the first year, recorded in the Sewer O&M Fund 640 (Revenue Account 640.40.80.015-4500.08).
The rent paid to the City will be $325 per farmable acre for the first year (generating about $107,250 in total revenue), and is due by November 30th of each year of this Lease and any extensions. Rent shall be adjusted pursuant to the Co...
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